Viens served two years in federal prison in the 1980s for conspiracy to commit wire fraud. In 2011, he was ordered to pay back more than $2 million to investors for defrauding them in deals involving nursing home developments in Arizona.

The Board of Selectmen voted unanimously during a special meeting Thursday to recommend that Martin and Town Attorney Kevin Nelligan acknowledge the withdrawal and cease all discussions with XS4D and any of its affiliates.

Martin, who was absent from Thursday’s meeting, had been in negotiations with XS4D Entertainment Holding Company, an Arizona-based LLC that planned to manufacture high-end gaming chairs at the 32 Lake St. site, since fall 2013. The company, managed by Yvonne Martin and Brook Douglas, made a bid of $15,000 to buy 1.65 acres of the blighted, contaminated brownfield.

The offer from XS4D was pulled off the table last week by Viens, who Martin dealt with throughout the negotiating process.

Mayor Marsha Sterling said Martin had been aware of Viens’ past misdeeds but did not alert her or Nelligan.

Martin said Friday that he had learned about Viens’ past “a few months ago,” and that the information hadn’t swayed him from negotiations since Viens was “only the go-between” and his name wasn’t on any of the paperwork submitted expressing interest in the site.

As of Wednesday, Martin had said he was still working to get the deal with XS4D back on the table.

“Based upon discussions with the mayor and the town attorney, the decision was to move on,” Martin said Friday. “I fully support that decision.”

When asked why he would not be apprehensive dealing with a convicted felon Martin said that safeguards would have been in place if the deal had proceeded so that there would have been no negative financial impact to the town.

Martin said he couldn’t provided details on what the exact safeguards would have been since the deal “never got that far.”

“It’s moot at this point. We’re not going forward with it, so we move on,” said Martin.

He said the town is always cautious in its business dealings and the same applied to the Lambert Kay negotiations.

“If I thought that the town was at risk, then I would take appropriate steps,” said Martin.

Just days after Gov. Dannel P. Malloy visited the Lambert Kay site to announce a $500,000 state Small Town Economic Assistance Program grant for Winsted, a town meeting was held July 21, while Martin was on vacation, at which townspeople were expected to vote to approve or deny the property’s sale.

Sterling was contacted that day by a man who went solely by the name “David” and described himself as a “hedge fund manager, serving as a consultant for XS4D.” Viens gave Sterling several terms the town would have to meet for representatives of XS4D to attend the town meeting: First, “that no questions be asked or disclosure sought as to the purchaser, their business plan, their product, their financial resources or their experience and ability to undertake the project.” Second, David wanted a receipt from Sterling assuring the deal would be approved at the town meeting; and third, that the town contribute the entire STEAP grant — $500,000 — to the transaction without disclosing this at the town meeting. This had been “explicitly agreed” upon with the town manager already, according to Viens.

When Sterling did not agree to the terms, Viens requested the town meeting be postponed and later sent a message saying XS4D had abandoned their interest in Lambert Kay and moved on to another site, while at the same time criticizing the mayor for her “disrespect” in asking questions about the deal and plans for the property.

The Register Citizen contacted Viens, using a number listed in his email conversations with the town, late last week. He responded to the name David Viens initially, but when asked directly, he refused to divulge his identity or where he was from, other than that he currently lives in New York.

“I’m not representing [XS4D],” he said. “I’m just a friend of theirs. I’m not a paid employee; I’m just doing some diligence for him.”

Viens said that he had “no role” in the XS4D deal and would not clarify in what way he acted as a third party. He mentioned that the company and all those involved had “confidentiality agreements” and that large deals like this occasionally operate in what he called “stealth mode.”

Sterling said after the meeting Thursday that she had no comment as to whether she thought Viens had planned to scam the town of Winsted.

As for the next plan for the Lambert Kay property, Martin said he town would work to utilize the STEAP grant money to clean up the site and revisit its sale at a later time.

Martin was asked if a person’s criminal history would impact potential deals with the town.

“I don’t think it would be appropriate for me to request a criminal background check on anybody who submits a site plan application,” said Martin.